A recession is best defined as a period during which _____
A) the percentage of the population employed increases.
B) employment, output, and income decrease.
C) the money supply in an economy decreases.
D) the usage of labor and capital resources increases.
E) budget deficit and trade deficit decrease.

Question

Quizplus · Accepted Answer

A recession is characterized by a significant decline in economic activity, specifically in terms of employment, output, and income. This is often accompanied by a contraction in the overall economy, marked by decreased consumer spending and investment. Therefore, choice B is the best definition of a recession. The other options may be impacted by a recession, but they do not define what a recession is.

A Recession Is Best Defined as a Period During Which